A word from Jean-Marc Saugier

The Covid-19 health crisis has profoundly affected economies and markets throughout 2020. Governments and central banks quickly took action to avoid a major and lasting economic crisis.

In the United States, the Federal Reserve resumed its asset purchase program comprising government bonds, municipal bonds, corporate bonds, mortgage securities and securitizations for a total amount of USD 2.6 trillion.

The European Central Bank has introduced a new emergency purchasing program in response to the pandemic. Initially announced for €750 billion, the Pandemic Emergency Purchase Program, or PEPP, was subsequently increased to €1.85 trillion. TLTRO III terms[1] were also eased with a reduction in the rate and a downward recalibration of the growth targets that banks must achieve in order to benefit from the lowest rate.

The Bank of England followed in the footsteps of the FED and the ECB, lowering its base rate in two stages from 75 bps to 10 bps, and increased its purchase program for government and non-banking investment grade corporate bonds by £200 billion in March 2020.

The contraction in commercial activity has reduced the need for financing. A single 7-year fixed-rate €750 million bond was issued in January.

Private customer deposits increased Deposits by €2.8 billion since December 2019, reaching €20.5 billion at 31 December 2020.

In the secured refinancing segment, private securitizations of car loans in the United Kingdom and leasing in Germany saw their revolving periods extended for an additional year. The French subsidiary also carried out its first securitization of automotive Lease with Purchase Option (LOA) receivables in France for an amount of €991.5 million.

These resources, to which should be added, on the European scope, €4.5bn in undrawn confirmed credit lines, €4.5bn in collateral eligible for ECB monetary policy operations, and EUR €7.4bn in high quality liquid assets (HQLA), allow RCI Banque to maintain the financing granted to its customers for over 12 months without access to external liquidity. At 31 December 2020, RCI Banque's liquidity reserve (Europe scope) stood at €16.6 billion, an increase of + € 7.1bn compared to the end of 2019.


RCI Bank and Services benefits from diversified sources of funds and a high liquidity reserve ensuring its solid financial security.